A-share search for “bull”: When will the core assets return?

Summary

[A-share search for “bull”: When will the core assets return?]The A-share market has recently oscillated and rebounded, and the core assets “return of the king” are expected to grow stronger. After the Spring Festival, the trend of “Mao” in various industries that has been sharply corrected has rebounded. Analysts predict that A shares will likely continue the core asset bull market rather than the general bull market. Since June, the market has entered the interim report disclosure window period, and investors are advised to anchor long-term investment opportunities in core assets. (China Securities Journal)

The A-share market has rebounded in recent days, and the core asset “return of the king” is expected to grow stronger.

On June 7, the military, technology, and wine sectors took turns to helpShanghai IndexBottom and rebound. In addition, the trend of “Mao” in various industries that have pulled back sharply after the Spring Festival has rebounded. Analysts predict that A shares will likely continue the core asset bull market rather than the general bull market. Since June, the market has entered the interim report disclosure window period, and investors are advised to anchor long-term investment opportunities in core assets.

The military industry and other sectors are active

According to the data, as of the close of the market on June 7, the computer sector ranked first with a 2.40% increase in Shenwan’s first-tier industry sectors, and the communications, electronics, and defense and military sectors all rose more than 1.5%. In the concept sector, the rice wine and beer sectors both rose by more than 7%, and the liquor sector rose by more than 3%.

For the technology sector, which performed strongly throughout the day, analysts said that its rise was mainly stimulated by news. On the one hand, with the advent of Harmony System 2.0, Harmony System terminal manufacturers are expected to accelerate the introduction, and the ecosystem construction of IoT applications will also speed up, thereby further boosting the IoT terminal applications and equipment market. On the other hand, the spread of the epidemic in Southeast Asia has exacerbated the contradiction between supply and demand in the semiconductor industry, triggering a surge in chip prices.

For the national defense industry sector,Northeast SecuritiesMilitary industryAnalystChen Dingru analyzed that the military industry chain represented by aerospace manufacturing has expanded significantly, upstream components and raw materials are used as the industry’s early indicators of prosperity, and orders have been greatly increased andPerformanceContinue to maintain a high growth trend, fully demonstrating the high prosperity of the industry. In the next 3-5 years, the fundamentals of the military industry sector are expected to continue to improve substantially.

For the liquor sector, Chuancai Securitiesfood and drinkIndustry analyst Ouyang Yujian said that although the liquor industry has entered the off-season, liquor companies still focus on raising prices and stopping products.Recently, many wine companies have successively heldshareholderAt the conference, market feedback was relatively positive.

It is worth noting that the science and technology, military, and alcohol sectors have continued to be active recently after a previous correction. Data show that since May 10, the computer sector has risen by more than 9%, the national defense and military industry sector has risen by more than 10%, and the liquor concept sector has risen by 37.27%.

Optimistic about core assets

As the technology, military, and alcohol sectors continue to be active, investors are increasingly arguing about the “return of the king” of core assets. In fact, “smart money” has already begun to lay out “core assets.”

The reporter combed and found that recently, northbound funds have concentrated on rushing to raise “mao” in various industries. In the top ten list of net purchases of northbound funds in the past 7 days, “Home Appliances”Midea Group, “Waterproof Mao”Oriental YuhongLiquor faucetKweichow MoutaiwithShanxi Fenjiu, “Photovoltaic Mao”SungrowwithLongji shares, “Chip Mao”Weir shareswithSilan MicroBoth are on the list.

In this regard, Cai Fangyuan, a strategy analyst at Galaxy Securities, analyzed that core assets are sought after by funds due to their strong competitiveness, stable growth, and strong endogenous growth momentum. As global liquidity gradually stabilizes and foreign investment enters the market, we are optimistic about the future trend of core assets.

According to Qu Yiping, an analyst at Shengang Securities, this round of market rebound is more like a continuation of the core asset bull market rather than a general bull market.Centaline SecuritiesAnalyst Zhang Gang said that there has been a significant trend of incremental capital entering the market recently, and it is expected that the sector will strengthen in turn in the future. It is recommended that investors pay close attention to changes in policy and capital.

Grasp the disclosure window period of the interim report

Currently, how should investors deploy? Cai Fangyuan pointed out that the A-share market has started a shock and rebound, and the accelerated economic recovery is the core driving force of the A-share market. June is the period for the disclosure of investment windows in the A-share interim report, and it is also an important time to anchor long-term investment opportunities in core assets.

Cai Fangyuan suggested to focus on the layout of high-quality core assets with high elasticity in the interim report and forecast performance, bias towards the market value of Zhongda and strong profitability, including steel,Non-ferrous metals, Coal, shipping, export and other cyclical industries, as well as industries that benefit from carbon neutrality and carbon peaks, such as new energy vehicles, photovoltaics, and resource products with shrinking supply.

Xu Fei, assistant to the director of Wanlian Securities Research Institute, is optimistic about three main lines of investment: one is the high-end manufacturing sector, such as the new energy vehicle industry chain, national defense and military industry, semiconductors, etc.; the other is leisure services, liquor, medicine and other major consumer sectors; the third is Undervaluedbank、Insurance, Securities sector.

Qu Yiping suggested investors to deploy electrical equipment, medical and biological,food and drink、bank、Chemical IndustryLeading stocks, while paying attention toNon-ferrous metalsReplenish inventory quotations.

(Source: China Securities Journal)

(Editor in charge: DF407)